After an initial 15% drop at the beginning of the week, the price rebounded in recent days. Historically, retail holders have been very influential in bullish cycles.
Since last week, when it was trading at USD 65,500, the price of the pioneering cryptocurrency has fallen by 10%. A study by Glassnode reveals that long-term Bitcoin holders (LTH) have already entered a moderate profit-taking stage. That means those investors have started to sell some of their BTC, exerting a downward price pressure.
Small holders, who have less than 1 BTC, are in an intensive purchasing stage. Analyst Willy Woo recently said that this guarantees that the current correction is not the beginning of a bearish market but a consolidation.
The weekly chart shows an intensification of Bitcoin purchases by some retail holders in recent days. Besides, some long-term holders have participated in BTC sales, although they have also kept buying.
Scaramucci Recommends that Investors Buy Bitcoin Now
Anthony Scaramucci, SkyBrigde Capital founder and former White House communications director, said investors should buy Bitcoin now. He explained to the CNBC television channel that people need to acquire the cryptocurrency even above USD 60,000.
Scaramucci believes that the value of Bitcoin could reach USD 500,000 per token by mid-2025. He also explained that there would not be enough BTC for the existing 49 million millionaires that decide to buy it worldwide.
The Price of Bitcoin Could Reach USD 400,000, Says Carlos Maslatón
Financial market analyst Carlos Maslatón believes that the Bitcoin bullish momentum has not yet ended. He even said that the value of the cryptocurrency could reach USD 400,000 in the current cycle.
Maslatón explained that he uses the Elliot wave model for making his predictions about the price of Bitcoin.
The specialist considers that the current cycle of Bitcoin will close within two or three years, with several rallies and corrections culminating at USD 399,759.
Starting from the all-time high above USD 69,000, he predicted two new caps of USD 78,000 and USD 117,000, respectively, for the next few months.
Featured Bitcoin Chart of the Last Week
The SOPR (spent output profit ratio) indicator measures the profitability of the BTC that investors have sold. A chart shows the behavior of short-term holders (STH) in the last week. The calculation of the profit ratio results from dividing the current value by the realized/effective price (the last time it changed hands).
When the SOPR of short-term holders is less than 1, those investors have sold at a loss. Every time the curve stays below 1, the price reaches a low, and after it drops below 1, there is a price rise. As the SOPR of short-term holders is currently below 1, there could be a price rally soon.
Governments Could Start Accumulating Bitcoin
Renowned Bitcoin evangelist Max Keizer recently predicted that governments would inevitably compete to mine and accumulate Bitcoin. He said that countries like the United States would follow in the steps of El Salvador.
The investor stated that the Central American adopted Bitcoin as legal tender due to the sharp deterioration of fiat currencies. He believes that inflation will wreak havoc on the lives of citizens and the economies of countries worldwide.
By Alexander Salazar
